No excessive tightening of regulation - for an internationally competitive Swiss financial center

The banks make a key contribution to the business location: they create jobs, train skilled workers, make substantial tax contributions and promote innovation. They are also reliable partners for industry and SMEs - in particular by granting loans that enable investment and growth.

With the takeover of Credit Suisse, UBS is assuming a special responsibility for Switzerland as a financial and business center. It is now crucial that the misconduct of the management of a single bank does not lead to a disproportionate burden on the entire sector or even have a negative impact on other areas of the economy.

Strong banks for a strong business location

economiesuisse welcomes the fact that the Federal Council intends to strengthen corporate governance in the banking sector with the proposals it presented today and is thus focusing specifically on curbing the effects of management failures. It also welcomes the strengthening of the banks' liquidity supply. It is right that politicians are thinking about how the Swiss banking center can remain stable in the future with targeted regulatory interventions. However, this requires a sense of proportion. Excessive domestic market regulation of an internationally active sector would entail the risk of central business areas such as asset management being relocated abroad. The banking system must be taken care of - especially globally active, systemically important institutions. Only with attractive, reliable framework conditions can UBS maintain its position as a Swiss global bank and remain a strong partner for the export industry and domestic companies, creating benefits for the location and the economy.

Securing economic stability through careful and appropriate measures

Even if the planned key figures primarily affect foreign subsidiaries, there is a risk that such a significant increase in capital backing would call into question UBS's business model as a globally successful bank with a strong home base and that important funds would have to be diverted abroad. If parts of the lending business were to be shifted to less regulated niches, the systemic risk could even increase. Sound but internationally coordinated banking regulation must therefore remain risk-based and prevent spillover effects on SMEs and industry. UBS is central to domestic companies and is the largest mortgage lender in Switzerland. This means that many homeowners and companies are clients of UBS. Tighter lending conditions would ultimately have an impact on them too.

High capital requirements already met - further tightening would be a step backwards

The capital adequacy requirements in Switzerland - including the Basel III standards that will apply from January 1, 2025 - are already among the strictest in the world. Switzerland has thus taken on a pioneering role and fully implemented these international requirements, while key competitor locations such as the USA and the UK are still waiting. Any further tightening would be tantamount to Switzerland going it alone and would structurally weaken the financial center. At a time when other countries are cutting back on regulation, an internationally coordinated approach is essential. The measures proposed today must therefore stand up to a comprehensive impact analysis and be balanced and internationally competitive.

Extensive fining powers pose risks for the separation of powers

Regulatory encroachment on other financial market players should be clearly rejected, particularly in the insurance industry. Although the planned introduction of FINMA's authority to impose fines appears to be a preventative instrument at first glance, it raises questions. Giving an executive authority with already far-reaching powers additional sanctioning powers may undermine the separation of powers and create new procedural risks. Such an expansion of state intervention options requires particularly careful consideration based on the rule of law.

Strengthen crisis resilience - secure competitiveness

economiesuisse will now carefully examine all of the Federal Council's proposals presented today. The economy supports and recognizes the goal of strengthening the financial centre's resilience to crises. At the same time, a well-founded public and political discussion on the appropriate means to achieve this is essential. At the same time, it must be ensured that the international competitiveness of the location is maintained. Symbolic politics or insufficiently balanced interventions in this sensitive area endanger not only the financial center, but the entire Swiss economy.